Semi-trailer Market Size, Share & Trends Analysis Report By Type (Flat Bed Trailer, Dry Vans, Refrigerated Trailers, Lowboy Trailers, Tankers), By Region (North America, Europe, APAC, LATAM, MEA), And Segment Forecasts, 2021 - 2028

Report Overview

The global semi-trailer market size to be valued at USD 29.36 billion by 2028 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% during the forecast period. Rising urbanization, increasing manufacturing activities, and the need for effective transportation are anticipated to be the major factors driving the demand for semi-trailers. Moreover, the growth of the end-use industries, along with the expanding cold chain industry, is likely to surge the demand for semi-trailers in the coming years. Besides, the offering of custom-built semi-trailers by the manufacturers to meet consumer demand is anticipated to create significant growth opportunities in the coming years.

Logistics is one of the key end-use industries for semi-trailers. The use of trailers and trucks for the transportation of goods is increasing rapidly. With the changing lifestyles and urbanization, people are more inclined towards getting the goods and products delivered to them. Fast Moving Consumer Goods (FMCG), e-commerce retailers, physical retailers, and suppliers are all involved in providing delivery to the customers. Road transportation is the most utilized mode of transportation in the logistics sector as it offers better cost advantages over other modes. Thus, with the improved road infrastructure, the demand for road transport has arisen, subsequently benefiting the semi-trailer industry.

Besides, the economic strengthening of the middle-class has surged the demand for several cold chain goods, such as pharmaceutical products, poultry, fresh flowers, fish, dairy products, and fruits and vegetables. Moreover, increasing disposable income in developing countries has allowed people to spend more on fresh, organic, and prime quality products. Thus, the increasing number of QSR, the general push for healthier, fresh products, and higher disposable income are positively impacting every aspect of the cold chain industry. Hence, the expanding cold chain industry across the developed and emerging economies is expected to surge the demand for refrigerated trailers.

Moreover, manufacturers are investing significant amounts in enhancing semi-trailer designs in order to meet the growing demand for fuel-efficient vehicles. In addition, increasing preference for packaged food is contributing to market growth. Furthermore, increasing awareness among fleet operators regarding benefits offered by semi-trailers with respect to efficiency and productivity has led to the greater adoption of such vehicles.

The COVID-19 pandemic has affected the demand for semi-trailers in 2020. The implementation of lockdown and social distancing regulations across the globe has, subsequently, led to losses for industries, such as manufacturing, logistics, automobile, entertainment, restaurant, and hospitality. Additionally, the pandemic has negatively impacted the production and sales of semi-trailers across the globe. Similar to players operating across different industry verticals, semi-trailer manufacturers have also suffered from losses due to the pandemic. However, some companies have also reported an increase in the unit sales of semi-trailers in 2020 as compared to 2019. For instance, China International Marine Containers (Group) Ltd., a China-based manufacturer of semi-trailers, witnessed an increase in the unit sales of semi-trailers by over 11% in 2020.

Semi-trailer Market Trends

Fast Moving Consumer Goods (FMCG) is one of the most profitable industries in the world. The products have a limited shelf life since they comprise perishable items including meat, fruits, vegetables, dairy products, and baked goods, all of which are in great demand. The items regularly purchased are typically inexpensive and marketed in huge quantities. Rising income, population growth, brand awareness, favorable legislation, and digitization of the purchase process are all key drivers for the FMCG business.

Certain constraints in the semi-trailer market are anticipated to obstruct the industry's potential growth such as the number of local players inside the unorganized sector and the lightweight of semi-trailers while low Total Cost of Ownership (TCO) and maintenance costs present challenge to the market's growth in the forecast period.In addition, the local players encourage the production of semi-trailer vehicle alternatives that are economical.

The automobile industry underwent technological advances such as witnessing the vehicle conversion from a gas engine to an electrical one. In the coming years, electric semi-trailers present an opportunity for the original equipment manufacturers and semi-trailers. Perseverance and innovation have resulted in the development of electric semi-trailers.

Type Insights

The dry vans segment accounted for the largest volume share of over 35.0% in 2020 and is anticipated to maintain its lead over the forecast period, with wide applications across multiple industries. Dry vans are generally used to transport freight that requires nominal protection against road and climate conditions. These trailers are used by the full truckload (FTL) and less-than-truckload (LTL) fleet operators for their operations owing to their cost-efficiency and versatility.

The flat bed trailer segment captured a sizeable volume share in 2020 and is estimated to expand at the second-highest CAGR of 6.4% in terms of revenue from 2021 to 2028. The growth in the construction industry across developed and emerging economies is anticipated to fuel the segment growth. Flat bed trailers are generally used to transport heavy cargo, such as heavy machinery and construction materials and equipment. Besides, the adoption of refrigerated trailers is expected to increase significantly due to the expanding cold chain industry. The increasing number of QSR, the general push for healthier, fresh products, and higher disposable income are positively impacting every aspect of the cold chain industry.

Regional Insights

Asia Pacific held the largest revenue share of over 35.0% in 2020 and is expected to witness the fastest growth during the forecast period. The regional market is mainly driven by emerging economies such as India and China, which comprise large supply chains and logistics networks and are among the fastest-growing economies globally. Moreover, the growing e-commerce industry in the region is anticipated to surge the demand for dry vans trailers in the coming years.

North America accounted for the second-largest revenue share in 2020. The North American market is currently in the replacement phase with an aging fleet that needs to be replaced with technologically advanced semi-trailers. Moreover, the busy road infrastructure network and the growing transportation and logistics industry in the U.S. and Canada are expected to boost the regional market growth. Furthermore, relaxation in government regulations regarding weight carrying capacity and dimensions of the semi-trailer is likely to lead to the increased demand for lightweight transport vehicles, thereby driving the market demand. In addition, the California Air Resources Board (CARB) mandated the installation of “SmartWay”, a verified aerodynamic technology, to improve fuel efficiency in tractors and semi-trailers.

Key Companies & Market Share Insights

The market for semi-trailers is highly fragmented due to the presence of several global and regional players. Organic growth remains the key strategy among the industry participants with a major focus on product launches and expansions to expand their presence across the untapped market and meet consumer needs. For example, in June 2021, Schmitz Cargobull, a European manufacturer of semi-trailers, announced the opening of its new factory in Manchester. Through this expansion, the company aims to build customized vehicles for the U.K. and Irish operators.

Furthermore, there is an increasing trend towards collaboration among component suppliers and OEMs. The OEMs are focusing on forming strategic partnerships with component suppliers in order to ensure a consistent supply of inventory. With the advent of autonomous trailers equipped with advanced telematics, demand for these variants is on the rise, and manufacturers are hence compelled to scale up their production volumes to meet the growing demand.

Recent Developments

• In March 2020, American Trailer Rental Group LLC, a portfolio company of Milton Street Capital LLC, acquired Advantage Trailer Leasing Inc. This acquisition helps to have greater access to high-quality equipment and a larger customer base to serve

• In June 2021, Fruehauf announced the launch of a new service in collaboration with Telematics Leader Novacom

Some prominent players in the global semi-trailer market include:

• China International Marine Containers (Group) Ltd.

• Fontaine Commercial Trailer, Inc.

• Great Dane

• Kogel Trailer GmbH & Co.KG

• Krone Commercial Vehicle Group

• Lamberet SAS

• Polar Tank Trailer, LLC

• Schmitz Cargobull

• Utility Trailer Manufacturing Company

• Wabash National Corporation

• HYUNDAI TRANSLEAD

Semi-trailer Market Report Scope

Global Semi-trailer Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global semi-trailer market report by type and region:

• Type Outlook (Volume, ‘000 Units; Revenue, USD Million, 2016 - 2028)

  • Flat Bed Trailer

  • Dry Vans

  • Refrigerated Trailers

  • Lowboy Trailers

  • Tankers

  • Others

• Regional Outlook (Volume, ‘000 Units; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (MEA)